Nokia CEO Says AI Boom Echoes the Internet’s Rise—But It’s No Bubble

Nokia CEO Justin Hotard says the surge in artificial intelligence investment is driving a long-term growth cycle comparable to the internet boom of the 1990s—though he downplays fears of a looming bubble.

“I fundamentally think we're at the front end of an AI supercycle, much like the 1990s with the internet,” Hotard told Reuters. “Even if there's a bubble, a trough, we'll look to the longer-term trends. And right now, all those trends are very favorable.”

His comments come as debate intensifies over whether the wave of AI spending can be sustained. A recent Bank of America survey found that more than half of fund managers believe AI stocks are already in bubble territory. High-profile tech figures, including Jeff Bezos and Sam Altman, have also warned that overheated investor enthusiasm could eventually lead to heavy losses.

Despite those concerns, demand for data centres continues to soar as companies expand the infrastructure needed to power AI systems.

Hotard, who previously led Intel’s Data Centers and AI division before joining Nokia in April, said the company is seeing growth “across the board,” from large technology firms to smaller players expanding their operations in Europe.

“Clearly, the incremental growth investment is driven by data centres,” he said. “It's a huge step up in volume.”

Earlier on Thursday, Nokia reported quarterly earnings that beat market expectations, boosted by strong optical and cloud demand—particularly from AI-focused data centre customers following its acquisition of U.S. optical networking firm Infinera.

Nokia’s pivot toward AI represents its biggest strategic shift since selling its mobile phone unit in 2013. While mobile networks remain central to its business, the company is integrating AI into areas such as radio access and fibre networks.

Last year, it acquired Infinera, one of the leading suppliers of intra–data centre communication systems. And in September, Nokia established a dedicated Technology and AI division, led by new Chief Technology Officer Pallavi Mahajan, a former Intel executive, to accelerate its AI strategy.

For Nokia, the message is clear: the AI era isn’t just reshaping the tech landscape—it’s redefining the company’s future.